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National Debt

Extending the Bush Tax Cuts for all Americans

  • September 15, 2010

    This week, the House and Senate return to the Capitol to complete unfinished business, before returning to the campaign trail. On top of the agenda is debate surrounding the extension of the Bush era Tax Cuts. These tax cuts, enacted in 2001, are set to expire at the end of 2010. Currently, there are two prevailing approaches in each chamber as to how they will tackle renewing all or some of the tax cuts.

    In the Senate, Minority Leader Mitch McConnell has already stated that: “Only in Washington could someone propose a tax hike as an antidote to a recession.” McConnell, committed to keeping taxes low in the midst of a recession, has introduced a tax package this week that would make all of the Bush cuts permanent, expand estate tax relief as well as relief of the alternative minimum tax.

    Meanwhile, in the House, Minority Leader John Boehner flinched this weekend when it came to voicing his commitment for a full extension of the Bush tax cuts. He has initially offered to extend the current rates for two more years and cover the cost by cutting domestic agencies and the State Department by $84 billion, or 18 percent below current levels. However, if that plan were to fail, he would not stand in the way of only allowing the cuts to continue for those making under $250,000. This fallback position is the same one which many Democrats have begun to advocate for, including President Obama.

    The problem with allowing the tax cuts to expire for those who make over $250,000, is that this decision will penalize small business owners. These are the owners of the same small businesses which create 70 percent of the new jobs in our country each year. Job creation comes on the heels of increased business revenue. About half of the $1 trillion in net positive business income reported each year comes on returns that are at least partially subject to the higher rates. The National Federation of Independent Business has stated that the move would affect 40 percent of companies with 20 to 250 workers. By subjecting this revenue to increased taxes, Congress will stifle much needed jobs across the nation.
     
    Our leaders in Congress cannot allow these vital tax cuts to expire. Making the tax cuts permanent would create a sense of stability in a legislatively unfriendly business climate. Already such legislation as the healthcare bill, stimulus bill, and now the financial regulatory bill has made business owners uncertain about expanding operations and hiring new workers. It’s time for Washington to understand that lower taxes mean more money in the hands of job creators, which have successfully created more jobs in our history than any bloated government bureaucracy. Businesses need reassurance that the government is ready to support private sector job creation. It’s time to make the tax cuts permanent for all Americans!


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